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Mazda, Ford deny plans to dismantle China venture

by Staff Writers
Beijing (AFP) Jan 18, 2010
Japan's Mazda Motor Corp and US giant Ford Motor Company on Monday denied reports they planned to dismantle or restructure their joint venture in China with Chinese partner Changan Automobile.

Ted Liu, a Shanghai-based spokesman for Ford, told AFP that reports the partnership would be dissolved were "speculation."

Japan's Nikkei newspaper reported on Sunday that Mazda planned to end its partnership with Ford in China by 2012 to allow itself to independently make decisions such as production increases.

Mazda's spokesman in China, Naodo Oikawa, told AFP the report was "conjecture."

"The three partners -- Mazda, Ford and Changan -- continue to enjoy a positive relationship," he said.

Meanwhile, the Wall Street Journal said Mazda and Ford were discussing ways to split their shared manufacturing bases in the southwestern city of Chongqing and the eastern city of Nanjing into separate entities.

The Wall Street Journal report said Ford and Changan would own and operate the Chongqing site while the Nanjing base would be run by Mazda and Changan. It cited an unidentified person close to Mazda.

AFP calls to Changan went unanswered.

However, Mazda confirmed it would move production of its Mazda 3 compact car from Chongqing to Nanjing, where it already makes its Mazda 2.

Oikawa said Mazda would start to manufacture its Mazda 3 in Nanjing by the middle of this year -- but denied this was part of a restructuring of the three-way venture.

"The reason is to enhance Mazda 3 production and further increase enthusiasm for the CFMA (Changan Ford Mazda Automobile Corporation) brand," Oikawa told AFP.

The move by Mazda was meant to give more production room for Ford in the Chongqing factory, said Mazda's Tokyo-based spokesman Yuji Kato.



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